Robert Z. Lawrence argues that, contrary to a widespread perception of lagging wage growth, constant dollar labor compensation for all US workers has kept pace with output when appropriately measured from 1970 to 2000, and perhaps to as late as 2008.
Following the confrontation-driven agreement between Greece and its international creditors on July 12, Europe appears ready for its usual August torpor. European leaders deserve a break. Their numerous emergency summits have stabilized the continent’s outlook for at least the next year, virtually eliminating the specter of a Grexit and lowering the prospect of a British […]
In “The Lessons Greece’s Lenders Forgot” (Wall Street Journal, July 10), John Taylor argued that the United States and the International Monetary Fund (IMF) erred in May 2010 by not abiding by the IMF’s 2003 framework for exceptional (large scale) access to its financial support. I argued in a letter to the Wall Street Journal that Taylor did not have all of his facts right about the Greek case and about the IMF’s framework for exceptional access.
Since 1970, the real wages of US production workers have stagnated, despite the rapid growth in output per worker. This apparent disconnect between labor productivity and real wages is most dramatic when real output per hour is contrasted with real average hourly wages since 1970. While real average hourly wages have stagnated, business sector output […]
If Greece implements its reform program approved by parliament, it has a good chance of stabilizing its economy and achieving growth in the years ahead, according to Jacob Funk Kirkegaard. Progress on the structural reform front can then lead to a discussion with European and international creditors about providing debt relief to Greece.
The agreement between Greece and its international creditors [pdf] announced on Monday represents a predictable capitulation by the Greek government from a position advanced for weeks by Prime Minister Alexis Tsipras. Faced with the dire repercussions of an exit from euro area institutions—including a collapse of its banking system and a broader economic disaster—Tsipras accepted […]
The agreement announced on Monday between Greece and its international creditors—consisting of the Eurogroup of finance ministers, the European Central Bank (ECB), and the International Monetary Fund—is good for Greece. But the process has been detrimental for Europe and for the euro.
It didn’t have to be this way, with Greece in default to the International Monetary Fund (IMF) and facing possible default on the European Central Bank (ECB) and consequently at risk of being forced to print its own money and exit the euro. The projections in my book last June showed the ratio of public […]
The ominous rise in debt-to-GDP ratios in Greece since 2010, and in the advanced economies after the global crisis of 2008–09, has rekindled interest in the historical experience of large samples of countries. Two important fiscal variables are interesting to consider in this regard: the primary fiscal surplus (i.e., the difference between fiscal revenues and […]
Despite widespread acceptance of the “big man” theory of history, individuals rarely make a personal and decisive difference in politics. But Prime Minister Alexis Tsipras of Greece is on the threshold of doing just that. He will soon decide whether to return his country to economic normalcy or crash it out of the euro and […]